China Dongsheng International Announces Fiscal Year 2008 Second Quarter Financi...( NEW YORK Feb. 20 /Xinhua-- China ...),Health

NEW YORK, Feb. 20 /Xinhua-PRNewswire-FirstCall/ -- China Dongsheng International, Inc. (OTC Bulletin Board: CDSG), a leading developer and manufacturer of nutritional supplements and personal care products provider in China, today announced the Company's financial results for the fiscal year 2008 second quarter ended December 31, 2007.

-- Company's strategic plan realizes initial results of manufacturing its

own branded products in-house.

-- Second quarter gross profit increases 39% to $8.51 Million

-- Gross margin improves to 85% from 58% versus prior comparable period

-- Net income increases 12% to $4.33 Million quarter over quarter as the

net margin improves to 43.2% from 36.8%.

"We continue to execute our strategic plan to vertically integrate operations and focus on our own branded products. We are pleased to be able to increase our net earnings during this transition period while dramatically improving our gross margins," said Mr. Aidong Yu, Chairman of China Dongsheng International, Inc. "Moreover, we expect to see continued significant growth in profits from our branded products in the coming quarters as we continue to roll-out new production lines at our manufacturing facilities. With our extensive distribution, strong demand for our branded products, expanded R&D team, and our GMP certified manufacturing facilities, the Company is becoming increasingly well positioned to capitalize on the growth of the healthcare market in China"

Second Quarter Fiscal Year 2008 Results

Net sales for the fiscal year second quarter ended December 31, 2007 totalled $10.01 million and were relatively unchanged compared to the total of $10.49 million in the same period in 2006. This largely reflects our focus on our higher margin branded products manufactured in-house and discontinuing the distribution of certain lower margin products from third parties.

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